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GRANGEMOUTH REFINERY & COMMUNICATION

GRANGEMOUTH REFINERY & COMMUNICATION. SURVEY & PROPOSAL A DAVIDSON SEPT 2008. CONTENTS. Refinery Survey Results What Some Other Companies Do Proposals. SURVEY RESULTS. Cross Section of 10 people

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GRANGEMOUTH REFINERY & COMMUNICATION

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  1. GRANGEMOUTH REFINERY& COMMUNICATION SURVEY & PROPOSAL A DAVIDSON SEPT 2008

  2. CONTENTS • Refinery Survey Results • What Some Other Companies Do • Proposals

  3. SURVEY RESULTS • Cross Section of 10 people • Looked at what they knew re.- Business strategy- Business performance- Reliability & Asset Integrity Improvement • Looked at what communication mechanisms they value • Asked for ideas re. improvement to communication

  4. X Ineos’s Business Strategy For The Grangemouth Refinery – Been Told? • 4 people had a vague recollection of a communication on business strategy but could not remember any clear details • 6 people didn’t believe they’d received any information “I’m annoyed that I don’t know what it is” “I thought, unlike Innovene, it was the style of Ineos to limit communication”

  5. X Ineos’s Business Strategy For The Grangemouth Refinery – Think Know? • 9 people had a reasonable idea as to some key aspects of what might be strategy, eg:- maximise profit whilst being safe and legal- improve availability- asset refurbishment, where necessary (was?) • 1 person had no idea “the amount we’re told is needed to be invested seems to keep increasing”

  6. Grangemouth Refinery Business EBITDA Performance - Knowledge? • 4 people were very familiar with recent performance, understood the YTD position and reasons and had good views re. outlook • 4 people had a reasonable knowledge of the recent EBITDA performance and the rough YTD position • 2 people had little or no idea of recent EBITDA performance and the outlook for year end “don’t know if good enough” “we’re making a fortune”

  7. Reliability & Asset Integrity Performance - Knowledge? • 7 people knew that recently we have done well • 3 people not sure how we are doing

  8. Reliability & Asset Integrity Improvement Activities - Knowledge? • 6 people knew of a range of improvement activities relevant to their Team/Area • 9 people aware of at least one improvement activity relevant to their Team/Area • 1 person not aware of any improvement activities • Little knowledge of what’s happening outside their Team/Area

  9. Communication Processes - Valued ? ? ? ? X

  10. X Survey – Notice Boards • Plant Amenities Area *- April’s bonus summary- nothing else on performance- 1 very recent HSE incident summary- house for sale • ROSC- Unite posters- ’05 Innovene posters re. Manufacturing & Ops Excellence- HSE posters- Transformation update- June Bonus performance summary

  11. X Survey - Gate 4 Digital Board • Why do we tolerate it?

  12. Survey – What People Would Like • Information on Ineos’s strategy for the refinery • To feel part of the Company • Information on rest-of-site’s performance and implications • More information on financial performance – clear and simple • More face-to-face communication:- Town Halls- Informal RM walk-abouts • Information direct from RM (someone who wasn’t reading e-mails?) • Less rather than more, knowing what’s worth looking at • Less jargon in communication • More through the line/line mtgs (those getting via this route) • More on what’s going on relevant to local area and others • Open forum for asking questions and discussion • Use the ‘question of the week’ to form part of a debate on real issues • Would like regular info on Ineos’ performance and reputation in the market place NB. Comments from 8

  13. WHAT SOME OTHER COMPANIES DO • Saint Gobain Glass UK (winner of UK Best Factory 2006 and passionate about communication) • Huntsman, Greatham • Sellafield • Shell (via SGSi) • Ineos ChlorVinyls

  14. Big Communication Events • SG Annual, start-of-year sessions to all including strategy • H Annual sessions to all, president giving update on business strategy, performance and Quarterly updates by divisional CEO • S Sessions to all on an as required basis, MD led and include strategy updates • ICV Sessions every 6 months to all with CEO input on strategy update and performance • Shell ‘good Sites’Some Quarterly Sessions, with typically Business VP, going through ‘5 Year Book’ covering business objectives etc

  15. Routine Cascaded Communication • SG Monthly cascade, sharing site brief covering financial performance, HSE, improvement work etc and questions put on and answered via a site database • H Quarterly updates by divisional CEO Monthly production & uptime data e-mailed to all tm ldrs Weekly communication pack cascaded with contributions from all areas, including improvement activities • S Monthly cascade from the MD covering business performance, supported by monthly newspaper • ICV Monthly cascade on performance, with detailed brief, covering Financial, HSE, Process Safety, Reliability, Efficiency, Costs • Shell Quarterly: state of nation (town hall style) address of performance against targets and info about the business, competition, future developments etc – by site mgr & often with offsite presence (e.g. business VP) Monthly: Overall Refinery performance communicated via the RLT minutes as part of their performance review; placed on Intranet and cascade through line meetings Weekly: key issues communicated verbally from RLT via the line during team meeting at which team actions to achieve plan are also reviewed

  16. Other Communication SG:All mgm’t invited to a monthly 1-1.5hr communication session with the Site Mgr (MD 1/Q) – informal, few slides, any questions welcomedWeekly communication notes put in toilet/changing rooms – “v effective”Friday’s 6-8pm, 2 mgrs tour the Site (‘meet and greet’)Plasma tv’s in 3 places with daily changing communication update, mainly on results of improvement activitiesLittle use made of site e-mail for updating/’hard’ messagesRecent communication survey – scored v well with toilet com best followed by team brief Cross-site programme to improve communication kicking off right now

  17. Other Communication Cont’d H: Focus is on the weekly coms S:Focus is on the monthly newspaper loaded with improvement news‘Awards’ events to share good practicesRecorded telephone messages by MD on key issues ICV:Monthly note from CEO on performance and other key issues (e-mailed, e-bulletin board, notice boards)Daily production performance (some notice boards, the intranet)Weekly Site vulnerability summary e-mailed to 1st Line Mgmt and above (including contingency plans) each Friday

  18. Other Communication Cont’d Shell: 5 year book containing objectives, plan etc updated annually and distributed in paper version (approx 20 page A5 glossy booklet with key messages, business objectives, focus areas with metrics & some back up info) Rolling action/improvement plan cascading 5yr book objectives down to team level updated and discussed at monthly dept meeting Key performance against targets (with graphs) posted visibly on strategic notice boards and available through intranet – updated monthly Routine communication for short term plan/adjustment through weekly meetings Refinery business plan & its cascade into departmental targets and actions available on line and reviewed at least monthly at departments/local meetings

  19. PROPOSALS – QUICK WINS • RM town hall (eg update on recent performance, key future issues) • Continue to issue simple e-mails/notes with positive messages • Notice Boards – make some obvious immediate improvements • Gate 4 digital board – turn off until useful

  20. PROPOSALS – NEXT STEPS • Setup Business Briefing events for all personnel where Exec Members & RM share Business strategy, performance, key issues • Setup a group to work communication:- that uses the feedback from this survey and practices from other companies- that helps improve the simplicity/clarity of standard reports and communication events- that obtains feedback from the wider population- that helps champion communication

  21. RM/AFD Proposal • Annual Event (several, to cover everyone, eg ½ days Jan or Feb) NEW- Business Strategy & Performance up-date by CMcL/TT- Grangemouth Performance up-date by RM- something on HSE- maybe another key topic, possibly worked in work-groups …. • Quarterly Town Halls (RM/TT)- updates on performance and other key topics REGULAR- to more shift personnel? NEW • Monthly (cascade, face-to-face by line to all, ensuring good understanding) QUALITY- monthly HSE note- bonus score-card (except to SAS’s & RSL’s via e-mail?) • Weekly RLT members to direct reports on days (face-to-face) QUALITY- monthly avail report- monthly commercial report- weekly newsletter- other key issues • E-mails- GG weekly notes (ensure balanced and clear re. site make-up) RELEVANCE- RM notes (monthly targets/charity, general updates..) GOOD- quarterly Rel’y good news story NEW • Notice Boards - appoint owners NEW- review what should go on them • Gate 4 Board- stats correct QUALITY- notice board with useful messages REINSTATE • Leadership Out-and-About- RM GOOD- TT NEW

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